Fed sets October date for end of QE

clock • 1 min read

The US Federal Reserve has said it will end its purchases of government bonds in October, bringing to a close the quantitative easing (QE) experiment.

Since December, the Fed has been tapering purchases of $85bn per month by $10bn, down to $35bn last month. Plans outlined in the minutes from the June meeting show this continuing into August and September, with a $15bn reduction in October, as long as economic growth continues at its current pace. "If the economy progresses as the [Federal Reserve] expects, warranting reductions in the pace of purchases at each upcoming meeting, this final reduction would occur following the October meeting," the minutes read. US stocks rebounded on the news, reversing a two-day slide. The S&...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

The Bank of England raised interest rates by 25bps.

Bank of England hikes interest rates by 25bps after inflation jump

MPC referenced 'large and volatile moves in global financial markets'

Elliot Gulliver-Needham
clock 23 March 2023 • 4 min read
Central bankers have been performing a “high-wire act for several months, but it feels like the tightrope is getting thinner and higher by the day”.

UK inflation spike 'unlikely to persist' but could turn sticky

Bank of England rate hike expected as inflation rises

clock 23 March 2023 • 2 min read
Increases were largely attributed to rises in fuel, gas and electricity prices as well as food and non-alcoholic beverages

UK inflation unexpectedly jumps to 10.4% in February

All eyes on Bank of England interest rate decision

clock 22 March 2023 • 3 min read